Dual Rarities: Great American Gold Coins

There are coins that are rare because of their grade ("condition rarities") and there are coins that are rare because only a small number survive ("absolute rarities"). Then there are coins that are a whole different category: I call them "dual rarities." These are coins that stand out as having an amazing combination of date rarity and grade rarity. There are not many of these and even fewer exist in the arena of United States gold coinage. In this article, I'm going to choose one coin from each denomination which I think is the ultimate dual rarity. Before I begin, I want to establish three parameters for true dual rarity. These are as follows:

1.  The coin is a rare date. Whether due to low mintage or low survival rate, the coin is not easily available, even in lower grades.

2.  The coin is exceptional well-preserved for the issue. This is based not only on the date but the type. In other words, if the coin is a No Motto half eagle, it is not only exceptional for the date, it is one of the best of the entire type as well.

3.  Nothing close survives. There are coins that are dual rarities but other comparable examples exist for the date or for the type. An example (non-gold) is the 1845-O Dime, ex Eliasberg, graded MS69 by PCGS. It is the best early date Seated Dime known, its a rare date and the next finest known is somewhere in the AU58 to MS61 range. Now that's a dual rarity!

4.  Only business strikes qualify. Proofs, especially near early dates, are very interesting but they were made in limited editions for collectors and we can expect these to have survived. Branch mint proofs or specimen strikes are another story and despite being controversial and slightly esoteric, I'm going to let them qualify. Its my list and I can be the Dual Rarities Czar if I want to. So there...

1.  GOLD DOLLARS

This was a fairly hard denomination to choose a single coin from because there aren't a lot of truly rare gold dollars and the most famous issues (the 1849-C Open Wreath and the 1861-D) don't have a single really memorable survivor. So with some thought, I chose a coin that I actually had in my hands the other day and which was sort of an impetus for this article: the Brand-Akers 1863 gold dollar, graded MS68 by PCGS.

The 1863 is the single rarest Philadelphia gold dollar despite a mintage of 6,200 business strike. There are a number of branch mint gold dollars with lower mintages but they not to be found in supergrades. There are 14 Philadelphia gold dollars with lower mintages than the 1863 but these tend to have been saved in higher grades. A few of the dates have incredible individual coins known (the 1864 in PCGS MS69 quickly comes to mind) but they are not as rare, overall, as the 1863.

The Brand 1863 gold dollar was purchased by famed dealer-collector David Akers as Lot 29 in Part One of the Virgil Brand auction, held by Bowers and Merena in November 1983. It sold for $15,400. Akers kept this coin as part of his personal collection until a few years ago when he sold it via private treaty to a West Coast collector who is forming an incredible, high grade set of gold dollars.

The Brand 1863 dollar is a true "wonder coin" with amazing surfaces that literally drip with luster. When I was looking at it the other day, my first comment (made out loud) was "wow, what a coin! I'd be impressed with this if it was an 1880's date, let alone an 1863."

As I recall, this was Dave Akers' favorite gold dollar and that's saying something given that he a) saw, owned or sold nearly every great gold dollar in existence and b) personally loved gold dollars and collected them with an unbridled passion.

I love this coin for many reasons. First is the fact that it is one of the most aesthetically pleasing gold dollars that I've ever seen and it just happens to be a rarity. Second, it is the finest known by a long shot. I have personally handled an NGC MS66 and currently own a PCGS MS65 but neither of these is even on the same planet as the Brand 1863. Third, it has a great pedigree. Virgil Brand is probably the most underrated coin collector of all time. He has a reputation today of having been a hoarder and he certainly was happier owning ten of something than just one. But as his notebooks show, he put together a wonderful, sophisticated set that was one of the greatest ever. Brand's legacy has been further diluted by the fact that most of his coins were sold privately after his death but even the small fraction that was sold by Bowers and Merena from 1983 to 1985 was worth millions and millions of dollars. It is staggering to think what his complete collection would be worth today.

2.  QUARTER EAGLES

This was an easy, easy choice for me. The most valuable quarter eagle in existence is the Gem 1796 No Stars that sold for $1,725,000 in Heritage's 2008 FUN auction. It's old, beautiful, rare and gorgeous. But it still isn't my ultimate dual rarity quarter eagle. That honor belongs to....the Byron Reed 1864 quarter eagle.

Depending on whether you think the 1841 was struck in non-Proof format or not, the 1864 is either the first or second rares business strike Liberty Head quarter eagle from the Philadelphia mint and the second rarest issue of this design after the 1854-S. There are a few dozen known 1864 business strikes with most in the EF40 to AU50 range. There are exactly three known in Uncirculated which actually makes it more available than the 1865 quarter eagle but (and this is a big but) the 1864 in question is graded MS67 by NGC.

I first saw this coin in the Spink's October 1996 sale where it brought $132,000. I desperately wanted to purchase it and even offered to do it with no commission for my two biggest clients at the time but I had no luck. It was purchased by a West Coast dealer for his client who was, at the time, putting together an absurdly cool type set with as many dual rarities included as possible. It was graded MS67 by NGC many years ago and, by today's standards, I could easily see it in an MS67+ or MS68 holder.

You see great quality 1900-1907 quarter eagles from time to time. Not that long ago, I had a PCGS MS68 common date in stock that was an amazing coin. But it was a common date in an uncommon grade and a coin that I wouldn't have thought twice of buying in MS67. The Byron Reed 1864 is easily the finest quality early date Liberty Head quarter eagle that I've seen. It is nearly perfect with lovely rich yellow-gold color, razor sharp details and that certain "look" that you only find on very, very special coins.

There are so many reasons to love this coin. Its a Civil War rarity that is a big deal even in EF grades. It has amazing eye appeal. Its pedigreed to the famous Byron Reed collection and has been sold at auction only once since Reed acquired it in the 19th century.

This coin is owned, like many of the pieces in this article, by a major collector who understands the importance of it and considers it to be among the best of his many major rarities.

3.  THREE DOLLAR GOLD PIECES

This was a hard denomination to choose. I was leaning towards the Bass collection's 1854-D but this is a raw coin that I have never actually held in my hands (I've just seen it behind display glass) so I don't know if it is as great as I think it is. So, I'm going to cast my vote for a coin that is a bit more esoteric but which is easily the most valuable three dollar gold piece known: the unique branch mint proof 1855-S. This coin was last sold for $1,322,500 (as an NGC PR64 CAM ; it was recently crossed to a PCGS holder at the same grade and designation) in Heritage's 8/11 auction.

When examining any branch mint proof, you have two ask two basic questions: is the coin really a proof and is there a compelling reason why the issue would exist as a proof. In the case of the 1855-S three dollar, the answers are both resoundingly "yes."

I first saw this coin back in the mid-1980's and even then, knowing a fraction of what I know today, I was totally convinced the coin was a proof. It looks just like a Philadelphia proof of this era and, if you didn't flip it over and see the "S" mintmark on the reverse, you'd swear it was made at the Philadelphia mint. And there is a very compelling reason for this coin to exist as it is the first year of issue for three dollar pieces from San Francisco and there are known proofs for the quarter dollar and half dollar of this date.

The grade of this coin is not as absurdly high as most of the other coins on this list but, in the case of Proofs, I don't think this is as important. Proofs are either nice or not nice; there is little aesthetic difference between a PR64 and a PR66. What really matters about the 1855-S is that it is totally unique and it has a multiple level of demand that no other three dollar gold piece, with the possible exception of the 1854-O and 1854-D, possesses. And given the fact that there are no "wonder coin" 1854-O or 1854-D threes currently known, I give the dual rarity prize for this denomination, in a rout, to the Proof 1855-S.

This coin is currently owned by an eastern collector who added it to his set of Proof Three Dollars. It is almost certainly the most comprehensive set of proofs for this denomination ever assembled and quite likely the finest as well.

4.  HALF EAGLES

It took me about two seconds to choose the dual rarity that I felt was the "essence" of this denomination. It's a coin that I have written about in glowing terms more than once and, in my opinion,  it is one of the single greatest 19th century coins of any denomination. The coin is the Bass/Norweb 1864-S half eagle.

First a little background about the issue. The 1864-S is the second rarest half eagle from this mint after the excessively rare 1854-S and it is the third rarest half eagle of this design after the 1854-S and the 1875. There are around two or three dozen 1864-S half eagles and most are in low grades; typically in the VF-EF range. There is nothing even remotely close to Uncirculated for this date...with one exception and, boy, is it ever an exception.

While first attracting attention back in 1956 in Abe Kosoff's "Melish" sale, the 1864-S half eagle really came to light when it was sold as Lot 875 in the Norweb I auction, held by Bowers and Merena in October, 1987. At the sale, Harry Bass, knowing this was a "have to have it" coin, paid a strong $110,000. It was then sold in Bass II, by Bowers and Merena in October 1999, for $178,250. Since that time, it has been off the market and, as far as I know, it is still in a southern collector's set.

Back in 1999, this coin was graded MS65 by PCGS and I thought, even then, that the grade was very conservative. Other than some weakness of strike, I recall the Norweb/Bass 1864-S half eagle being nearly perfect and other than some later date S mint coins of this type, I also remember it being among the best Liberty Head half eagles of any date that I've ever seen. I'd have to think this coin would grade at least MS66 to MS67 today and with barely any other 1864-S half eagles known in grades above AU50.....well, you get the point. Dual Rarity!!!

5.  EAGLES

I'm not ashamed to admit that I have bias towards pre-1900 issues when it comes to all American coins. As you've no doubt noticed in this article, all the coins--so far--have been dated in the 1850's and 1860's. Well, I'm going to go outside my comfort zone with the ten dollar denomination, especially because there is really no single Liberty Head eagle that stands out to me as a classic dual rarity (although the Eliasberg Gem Uncirculated 1850-O would be the closest thing to this...). I'm going to go into the 20th century with this denomination.

In their March 2007 auction, Heritage sold a PCGS MS67 example of the 1920-S eagle for a record-shattering $1,725,000. This coin was not only one of the single best Indian Head eagles of any date that I've ever seen, it was one of the two or three rarest dates in the entire series and clearly the finest known.

The 1920-S eagle is a much different issue than the other dates listed in this article. It is far more available than, say, the 1864-S half eagle and far more available in Uncirculated than all of the other issues that we are discussing. There are a few hundred 1920-S eagles and a few dozen Uncirculated pieces exist, including at least four or five Gems. But you have to approach 20th century coins differently than 19th century coins as the former tends to be more condition rarity in nature while the latter tends to be more absolute rarity. To me, the 1920-S eagle comes closest to being a true dual rarity as it is a comparably tough issue in all grades and is recognized as one of the keys within this popular series.

There's some pretty cool background information about this coin. Steve Duckor purchased it in the June 1979 Stack's auction for $35,000 which was alot of money for him back then and alot of money for an Indian Head eagle. He held it for nearly three decades and his timing was just right as when he sold in in early 2007, the coin market was very strong, the economy was still rolling along and, most importantly, at least three very wealthy collectors needed this specific coin for their set. I was sitting next to Steve when the coin sold and I can still remember the look on his face after it hammered. To say he looked stunned is an understatement.

Today, this coin is in the Bob Simpson collection where it is part of the finest known set of Indian Head eagles. It is now graded MS67+ by PCGS and it remains one of the most amazing coins of any denomination that I have ever seen.

6.  DOUBLE EAGLES

You're probably thinking I'm going to choose the 1933 double eagle, aren't you. But here's why I'm not: besides the fact that the coin isn't theoretically legal to own (at least yet), I have the sneaky suspicion that the group that was "discovered" a few years ago in Philadelphia might not be the only ones known. Just a hunch but...

The coin I chose as my dual rarity double eagle may very well be the most valuable double eagle in existence but it is probably the least well-known single piece of the six that are featured in this article. The coin I've selected is the 1861 Paquet Reverse that was struck in Philadelphia. There are exactly two examples of this issue known to exist. One, graded MS61 by PCGS, sold for $1,610,000 in the Heritage 8/06 auction. The other, graded MS67 by NGC, was last sold at auction in the Norweb III sale (all the back in 11/88) for a then-strong $660,000.

This coin has an interesting back story. It features a one-year redesign by Anthony Paquet that was created in an attempt to improve the quality of strike for this issue. It failed and most of the Philadelphia strikings were melted; the San Francisco pieces of this design were actually released and over 100 are known today, mostly in lower grades.

The one thing that hurts the 1861-P Paquet double eagle is that it is a slightly obscure issue that could be considered a pattern. My argument against this is that it is widely known enough that the vastly inferior MS61 (mentioned above) brought over $1.6 million in a market that was less appreciative of rarities (and double eagles) that what we are seeing in late 2012/early 2013.

And then there is the coin itself. It is an absolutely smashing Gem that would be a great coin even if it were a common date. It is nearly flawless with the sort of naked-eye appearance that most of the other coins on this list all have and what makes it, in my opinion, so special.

I am virtually certain that when this coin does finally sell, it will set a record price for any coin ever produced. It is currently in strong hands but when it does sell, look out for some fireworks in the auction room.

So there you have it: my list of the ultimate dual rarities. Every coin on the list is a great piece for a variety of reasons and every piece is something that a sophisticated, wealthy collector would love to own. These coins combine grade and rarity like no others do.

Buying the Jump Grade

A few recent  coin sales that were made by my firm have given me an idea for a blog that I think is interesting. I've written about this before so I'll try to approach what I think is an important concept from a new perspective. The concept of value is extremely important to me when I buy a coin for my inventory and I try and share this with clients of DWN. In a nutshell, my core belief in coin buying is that, with most coins, there is a point at which you can "overbuy" . There are obvious examples of this and not so obvious ones.

The basis of my concept is what I refer to as the "jump" grade for a coin. The jump grade is the point at which the value spread for a coin becomes out of whack and the higher grade(s) for a coin no longer make sense.

 Let's look at a hypothetical pricing structure for a coin in higher grades:

     MS63:  $2500

     MS64:  $5000

     MS65:  $90000

This seems far-fetched, right? In truth, this is the exact value spread chart for a 1920 St. Gaudens double eagle, an issue that I consider to be the poster child for buying the jump grade which is MS64.

In this case, an MS64 example at $5,000 seems to make alot more sense than an MS65 at $90,000, especially given the fact that the single PCGS MS65 1920 Saint that has ever been graded isn't all that much nicer than a number of the 64's that I've seen or sold. So why would anyone buy a $90,000 version of a coin that can be represented in a set by a nice $5,000 version?

The answer is more complicated than you think. Obviously, part of it is vanity. Very high end collectors demand the finest coins and if a finest known coin jumps nearly 20x in value over the next grade down, that's just the reality of the market. If you are putting together a set of Saints that is competing for the finest in the set registry, the opportunity to add a finest known population one/none better coin (and the huge number of "points" that come with such a coin) is far and few between.

But what about the rest of us; we coin buyers without unlimited funds?

I'd like to share a few of my personal philosophies about value in numismatics.

     1.  Most collectors overbuy common coins and underbuy key coins. This is especially true for gold collectors who focus on 20th century issues. Let me give you an example. If you are collecting high grade Indian Head half eagles by date, why spend $25,000-30,000 on a common date in MS66 when you can buy a perfectly acceptable MS65 for half that amount? I think I'd rather pocket the $12,500-15,000 difference and apply it to a truly rare coin like a 1911-D. Conversely, the same collector who is working on the killer set of Indian half eagles would be foolish to scrimp on a classic issue like a 1929 and buy a "details grade" cleaned example so he could save money.

     2.  Issues with large underlying populations are dangerous purchases. Let me give you an example, along with a chart:

     1879-S Double Eagle

     Grade          PCGS Population          Value Range

     MS61                        225                        4000-5000+

     MS62                         59                          11000-13000+

     MS63                           3                           40000++

This issue actually has not one but two jump grades. For many collectors, the choice will be clear: buy an MS61 because in MS62 the price of this issue jumps almost threefold. An important point to consider is how many of the 225 coins graded MS61 (the actual number factoring in resubmissions is probably still 125-150) could become MS62 someday? Even if the number is just 10-20% percent of the total, that's still potentially as many as 15-30 new MS62 coins. Is the market deep enough to handle that high an influx and still maintain current value levels?

But for collectors with deeper pockets, MS62 is the jump grade for this issue, especially given the fact that they are unlkely to have the chance to buy an MS63 ( considering that the PCGS population is just three  and none have traded at auction since 2006). My personal choice would be a nice MS61 but I would buy a high end MS62 at, say, $15,000 if it were an obvious "just miss" coin.

3.  "Boring" coins deserve "boring" grades in most sets.  To me, a coin like a Dahlonega quarter eagle is interesting. That's why I don't think you can really "overbuy" in this series. There are very, very few D mint quarter eagles graded MS65 (or even MS64) and just about any coin graded as such, unless its horribly overgraded, is worthy of consideration for an advanced Dahlonega specialist.

But a coin like an 1898-S half eagle is boring. There were nearly 1.4 million struck, thousands and thousands exist and most range from nice to very nice. I have a hard time getting excited about a nice 1898-S half eagle; even the direct-from-the-mint to-John Clapp piece, now graded MS68 by PCGS. This coin last sold for $81,600 and I can think of alot of U.S. gold coins at this price point that I'd rather own. The only real "function" that this MS68 example might properly serve is as a type representative in a knock-your-socks off set.

4.  Type collecting looks at jump grades differently than date collecting.  Type collectors just buy one example of a specific design unlike date collectors who buy numerous. So a type collector will look at a jump grade differently. Going back to our earlier example of the Indian Head half eagle, for type purposes an MS66 might make sense and this becomes the jump grade; given that the next grade up (MS67) is likely to cost $70,000 or more.

5. You can throw the book away when it comes to dual rarities.  There are coins that are rare because of their grade and there are coins that are rare because few are known. Then there is the "rarest of the rare." These are coins that I refer to as "dual rarities" because they check boxes on both sides. An example of a dual rarity is a coin like the Byron Reed 1864 quarter eagle, which is graded MS67 by NGC. This is a coin that is not only very rare in any grade, it is an amazing piece from a condition and appearance standpoint.

I'm going to write an article on dual rarities and it should appear in the next few days on my website www.raregoldcoins.com.

Whether you have a coin budget of $1,000 or $1,000,000, you want to get the best value you can every time you make a purchase. Understanding the concept of the jump grade can help you as you mull decisions for your collection.

How to Collect Dahlonega Gold Coins

One of the real pleasures to collecting Dahlonega gold coins is the variety of ways that the collector can pursue his avocation. Collecting these coins can range in levels of intensity from a mild flirtation to a complete obsession. As someone who has an abiding interest in these coins and who has helped many collectors with their purchases, I would like to present some suggestions on the way to collect Dahlonega gold coins. The Introductory Three Coin Set

The most basic way to collect Dahlonega coins is to purchase a single example of the gold dollar, quarter eagle, and half eagle. This makes sense for the collector who is on a limited budget or who is not certain how deep his interest in these coins lies.

A basic three coin Dahlonega set should consist of nice, problem-free coins. It also makes sense to stick to the more common dates. The grade ranges for these coins will probably fall between Extremely Fine-40 and About Uncirculated-55.

The 1849-D is a logical choice for the gold dollar in this set, since it is the most common and the most affordable date in the series. A nice Extremely Fine coin can be purchased for $2,000-3,000, while About Uncirculated examples range from $3,000-5,000, depending on quality.

The best quarter eagles for this set are the 1843-D, 1844-D, 1846-D, or 1848-D. A nice Extremely Fine example of any these dates swill cost $2,000-3,000, while an About Uncirculated costs $3,000-5,000+ (since no Dahlonega quarter eagle can be considered “common” in the higher About Uncirculated grades, the collector of more modest means should stick with a coin in the Extremely Fine-45 to About Uncirculated-50 grade range).

There are a number of dates in the half eagle series which would fit well in this set. These include the 1843-D, 1852-D, 1853-D, and 1854-D. Any of these dates can be purchased in nice Extremely Fine for $2,500-3,000, while an About Uncirculated will be in the $3,000-5,000 range.

An alternative to this set would be to buy all three denominations with the same date. This is feasible for the issues dated 1849-D, 1850-D, and 1851-D. Sets from 1852-D, 1853-D, 1857-D, and 1859-D could also be assembled, but least one coin in each of these sets is a scarcer, somewhat more expensive issue.

The basic three coin set can be further expanded by adding an 1854-D three dollar gold piece. Only 1,120 examples of this date were struck, and 1854 is the only year in which a coin of this denomination was produced in Dahlonega. An acceptable Very Fine example of this popular and rare issue can be purchased for $15,000-20,000, while an Extremely Fine will cost between $20,000 and $30,000+.

The Basic and Expanded Basic Type Sets

A type set of Dahlonega gold coins includes one example of each major type struck at this mint. Such a set includes the following:

• Type One gold dollar (1849-1854)
• Type Two gold dollar (1855 only)
• Type Three gold dollar (1856-1861)
• Classic Head quarter eagle (1839 only)
• Liberty Head quarter eagle (1840-1859)
• Three dollar gold piece (1854 only)
• Classic Head half eagle (1838 only)
• Liberty Head, obverse mintmark half eagle (1839 only)
• Liberty Head, reverse mintmark (1840-1861)

A set such as this makes for an extremely interesting display. The various designs employed in striking these nine major types provide a graphic illustration of the artistic and historic record of the Dahlonega Mint.

Most collectors who assemble a nine piece Dahlonega type set do so in grades that range from Extremely Fine-40 to About Uncirculated-55. It would be virtually impossible to complete this set in Mint State as two of these types – the Type Two gold dollar and the three dollar gold piece – are extremely rare in Uncirculated.

The specific coins included in a Dahlonega type set are generally the more common dates. Some collectors, however, use better dates in order to make their sets more interesting and potentially more valuable.

A nicely matched set of Extremely Fine-40 to Extremely Fine-45 coins will cost approximately $80,000 and $100,000. The two most expensive coins in this set would be the Type Two gold dollar and the three dollar gold piece. Together, these coins would account for at least half of the total cost.

A set with all of the coins grading About Uncirculated-50 to About Uncirculated-55 could be assembled for approximately $125,000-150,00. The cost of this set could be significantly reduced if the Type Two gold dollar and the three dollar gold piece were nice Extremely Fine coins, as opposed to About Uncirculated-50 or better.

This set can be further expanded if the Liberty Head, reverse mintmark half eagle is represented by an example with Small Letters on the reverse (i.e., a coin struck from 1840-1842) and by an example with Large Letters on the reverse (i.e., a coin struck from 1843-1861). The addition of this one extra coin would increase the cost of an Extremely Fine set by approximately $2,500-3,500, and an About Uncirculated set by $5,000-10,000.

Collecting by Denomination

Some collectors feel a certain affinity for a specific denomination. All three of the primary denominations struck at the Dahlonega Mint have their pros and cons.

The size of the gold dollar is a major turn-off to many collectors. It is hard to justify paying thousands – or even tens of thousands – of dollars for a coin that is about the size of an average adult’s thumbnail.

Another negative about the Dahlonega gold dollar series is the fact that many are among the most crudely struck coins ever produced in this country. They are certainly not pretty enough that they can be shown to admiring friends, and their crudeness puzzles most non-specialists.

The very reasons that cause some people to dislike gold dollars are the same reasons that others like them. Like the runt of the litter, they are so small and can be so ugly that this gives them a certain charm. Their crudeness adds to their allure as well. Just like a classic New England folk art portrait from the 18^th or early 19^th century, a Dahlonega gold dollar paints an accurate picture of the harshness and uncertainty of life in North Georgia in the decade leading up to the Civil War.

Another factor which attracts people to the gold dollar series are the small original mintage figures which many of these coins have. Only one of the thirteen has a mintage of over 10,000 coins, and five have mintages of 3,000 or less.

The Dahlonega gold dollar series is the most expensive of the three denominations to collect on a coin-by-coin basis. A complete set of thirteen coins in nice Extremely Fine grades will cost approximately $100,000+.

Every Dahlonega gold dollar is reasonably available in About Uncirculated grades, and the obstacles to completing such a set are available funds and the level of fussiness that a specific collector has. A complete set in grades ranging from About Uncirculated-50 to About Uncirculated-58 will cost approximately $150,000-200,000+. A complete set in Mint State is a formidable but not impossible challenge if the collector is patient, and  if he works with a knowledgeable specialized dealer who can assist him in locating such rare issues as the 1855-D, 1856-D, 1860-D, and 1861-D.

The Dahlonega quarter eagles are the most challenging of the three denominations. They can also be the most frustrating. Many collectors seek immediate gratification as they build a set. Assembling a high quality, complete set of Dahlonega quarter eagles requires a great deal of patience. A number of dates in this series (such as the 1840-D, 1841-D, 1842-D, and the 1854-D through 1856-D) are quite rare in any grade, and high quality examples are very challenging to locate. This is further compounded by the fact that many are found with crude strikes and poorly-prepared planchets.

The extreme difficulty of putting together a Dahlonega quarter set is what attracts many collectors. They appreciate the fact that they cannot assemble a set merely by making a few phone calls to dealers or attending an auction or two. They believe, correctly, that the best coins to buy are the ones that do not become available with any degree of frequency.

It is a realistic goal to assemble the complete set of twenty quarter eagles in Extremely Fine-40 to Extremely Fine-45 grades. Such a set should cost approximately $125,000-175,000. In About Uncirculated grades, this set becomes very difficult to assemble. A number of dates (such as the 1840-D, 1841-D, 1842-D, 1845-D, 1855-D, and 1856-D) are rare and costly in the upper ranges of About Uncirculated. The cost of such a set is approximately $200,000-300,000+.

The Dahlonega half eagle set is the most popular of the three denominations. One of the reasons is the relatively large size of these coins. Another is the fact that almost every date is fairly easy to obtain in medium grades. And finally, this is the most affordable of the three sets on a coin-by-coin basis.

A complete set of Dahlonega half eagles includes all twenty-four of the dates struck from 1838 through 1861, as well as the 1842-D Large Date and the 1846-D over D mintmark (for a total of twenty-six coins). A set of nice Extremely Fine coins costs approximately $100,000-150,000.

A complete set of half eagles in About Uncirculated is much more challenging. The 1842-D Large Date and the 1861-D are both  rare in any About Uncirculated grade. Other dates, such as the 1840-D, 1846-D Normal Mintmark, and the 1850-D are very scarce, even in the lower About Uncirculated grades, and years may pass before an especially choice piece may become available. A set of Dahlonega half eagles grading About Uncirculated-50 to About Uncirculated-58 costs approximately $200,000-300,000+.

Assembling a Complete Set of Dahlonega Gold

Once people start collecting Dahlonega gold coins, they often get bitten by the bug and decide to assemble a complete set.

A complete set of Dahlonega gold is generally understood to contain the following:

• Gold Dollars: A total of thirteen issues struck between 1849-1861.
• Quarter Eagles: A total of twenty issues struck between 1839-1859.
• Three Dollar Gold Pieces: A total of one issue struck in 1854.
• Half Eagles: A total of twenty-six issues struck between 1838-1861.

For half eagles,this includes both major varieties struck in 1842 (Large Date and Small Date), and both major varieties struck in 1846 (Normal Mintmark and D Over D Mintmark).

This is a grand total of sixty different issues, covering four different denominations.

Assembling a complete set of Dahlonega gold coins is challenging but very popular. Unlike many other mints, there is no single unobtainable issue that is either prohibitively rare, or essentially unobtainable.

I would make the following suggestions to any new collector who is considering putting together a complete set of Dahlonega gold coins:

1. Be patient. You can complete a set in a few months, but the changes are good that by rushing you will make a number of mistakes. Wait for the “right coin” to come along.

2. Stretch for outstanding coins. Truly choice, high end, Dahlonega gold coins are very hard to locate – regardless of date or denomination. Don’t miss the chance to own an important coin merely because you think the price is a little too much. In the long run, the decision to buy high quality coins will pay for itself.

3. Buy the best you can afford. If you are unable to spend $20,000+ on an About Uncirculated 1842-D Large Date half eagle, then wait until you have the chance to purchase a nice quality $10,000 example in Extremely Fine-45. Figure out a budget for each coin, and try to use this as a basis in making your collecting decisions.

4. Buy the rarest coins first. For each denomination, there are certain Dahlonega gold issues that are extremely hard to find. As an example, the 1840-D and 1856-D are often the last two pieces collectors add to their Dahlonega quarter eagle sets. If the opportunity presents itself, try to purchase these coins before the more common issues – such as the 1843-D or the 1848-D. You should always assume the following when assembling a complete set: your opportunities to purchase truly rare coins will be infrequent, while your opportunities to purchase the relatively common issues should be more frequent.

5. Buy with eye appeal in mind. The overall value of a set of coins is greatly enhanced when the individual pieces have good overall eye appeal. As an example, the finest known collection of Dahlonega gold coins (the Duke's Creek collection) was sold to an investor in 2003 for a figure in excess of four million dollars. Every coin in this set was extremely choice and had lovely, original coloration. This resulted in the collective value of the set being at least 15-20% greater than if the coins had been valued on an individual basis.

The final cost of assembling a complete set of Dahlonega gold coins is within the reach of many collectors. A set which has coins ranging from Extremely Fine-40 to Extremely Fine-45  costs in the area of $300,000-500,000+. A set which consists of coins grading from About Uncirculated-50 to About Uncirculated-58  costs approximately $600,000-800,000+.

As stated above, it would be extremely difficult (but not impossible!) to assemble a complete set of Dahlonega coins in Uncirculated grade. But a few people have managed to complete certain denominations in Uncirculated grade and the famous Duke's Creek set was complete in MS60 and above.

Collecting by Die Variety

Certain types of United States coins, such as large cents struck from 1793 to 1814, and half dollars produced from 1794 to 1836, are avidly collected by die variety. There are very few die variety collectors who focus on gold coins. This could possibly change in the future as more information about these varieties becomes available.

There are already some significant die varieties from the Dahlonega Mint that have made their way into the mainstream. Two examples of these are the 1842-D Large Date half eagle, and the 1846-D Over D Mintmark half eagle.

There are a number of other Dahlonega varieties that have yet to become regarded as essential components of a set. Some are very important and will probably be accepted in the near future. They are as follows:

1. 1843-D Large Mintmark Quarter Eagle: Of the 36,209 quarter eagles struck at the Dahlonega Mint in 1843, only 3,537 used the Large Mintmark which was to be found on coins dates 1844 and later. This is a significant and easy to recognize variety, which is many times rarer than the 1843-D Small Mintmark. PCGS and NGC both recognize this variety.

2. 1846 D Near D Mintmark Quarter Eagle: A small number of 1846-D quarter eagles were struck from a reverse which clearly shows traces of an errant mintmark to the left of the “regular” mintmark. This variety has is recognized by PCGS and NGC and is already included by most advanced Dahlonega collectors in their sets.

     Are you interested in beginning a collection of Dahlonega gold coins? As the wrold's leading expert, I am well-qualified to assist you. Please contact me directly via email at dwn@ont.com.

3. 1841-D Medium D Mintmark Half Eagle: Of the 29,392 half eagles struck at the Dahlonega Mint in 1841, only 4,105 used the Medium Mintmark which had been employed on coins dated 1840-D. This variety is quite rare and easy to recognize. It should sell for a significant premium over the 1841-D Small Mintmark. It is recognized by PCGS and NGC.

4. 1843-D Small Mintmark Half Eagle: This variety uses the same reverse as on the 1842-D Small Date half eagle. It is much scarcer than the 1843-D Large Mintmark, and may someday be recognized as such. This is another variety that PCGS and NGC both recognize.

5. 1848-D Over Low D Mintmark Half Eagle: This variety is similar in origin to the better known 1846-D Over D Mintmark half eagle, except that it is much rarer. On many examples, it is hard to see the first mintmark punch. Coins which clearly show the errant first punch are rare and desirable. This variety has recently been recognized by PCGS and is already included by most advanced Dahlonega collectors in their sets.

The Vasquez Rocks Collection: Dahlonega Gold Dollars

In the last blog in this multi-part series, I talked about the Philadelphia gold dollars in the Vasquez Rocks Collection. In this second installment, I'm going to focus on a group of coins that are near and dear to me: the Dahlonega gold dollars. The Dahlonega mint began production of gold dollars in 1849. They produced six Type One issues (from 1849 to 1854), a single Type Two (in 1855) and six issues that featured the Type Three design (from 1856 to the closing of the mint in 1861). For all three types, the estimated total mintage is fewer than 75,000 coins.

The individual who formed the Vasquez Rocks collection did something amazing: he formed a complete Uncirculated set of gold dollars from this mint. To the best of my knowledge, the only other collections that had a complete set of Dahlonega gold dollars in PCGS/NGC holders were Duke's Creek (sold by Heritage in April 2006) and Green Pond (sold by Heritage in January 2004 and assembled by me). This statement, of course, doesn't take into account older specialized gold dollar collections such as Ullmer, McNally, Miles and Pierce which were also complete in Uncirculated but which were formed before the days or third-party grading.

Before I get into specifics about the gold dollars in the Vasquez Rocks collection, here are a few interesting facts to ponder:

• Of the 13 coins in the set, ten have been graded by PCGS and three have been graded by NGC.

• The highest graded Dahlonega gold dollar in the set is an NGC MS64 (1853-D) and the lowest grade is a PCGS MS60 (1856-D).

• Two coins (the 1851-D and the 1858-D) have been awarded "plus" grade designations by PCGS.

• The average grade of a Dahlonega dollar in this set is 61.92; this figure is arrived at by giving the plus coins an extra half a point (i.e, 63+ is figured as 63.5)

• Coins in this set have pedigrees from such famous collections as Chestatee, Green Pond, and Pittman.

Now, let's get a bit more specific and discuss the coins, type by type.

I.  Type One

There are some outstanding Type One Dahlonega gold dollars in the Vasquez Rocks collection. A complete list is as follows:

• 1849-D, PCGS MS62

• 1850-D, NGC MS63

• 1851-D, PCGS MS63+

• 1852-D, PCGS MS61

• 1853-D, NGC MS64

• 1854-D, PCGS MS62, ex Pittman Collection

It's hard for me to pick a favorite coin from this group, but the piece that I like the best is the 1851-D in PCGS MS63+.

The 1851-D is the second most common Type One gold dollar (after the 1849-D) and there are as many as 20 known in Uncirculated. However, it is very rare in MS63 as evidenced by the PCGS population of four (with only two better). The Vasquez Rocks coin is the only MS63+ currently graded by PCGS and it is a magnificent coin with a bold strike, rich yellow-gold color and delightful frosty luster. It would make a perfect type coin for the collector who is seeking a single higher grade Type One gold dollar from Dahlonega for his collection.

II.  Type Two

The Dahlonega mint produced Type Two gold dollars for just one year. The 1855-D had an original mintage of just 1,811 and there are fewer than 100 known, mostly in lower grades. This is the single rarest gold dollar from this mint in higher grades and there are exactly four known in Uncirculated.

The coin in the Vasquez Rocks collection is graded MS61 by PCGS and it is the fourth finest known 1855-D dollar. It is one of two Uncirculated 1855-D dollars that were once in the Green Pond collection and it has been off the market since early 2004 when it was acquired from the auction by the owner of the Vasquez Rocks collection for $46,000.

Only a small number of 1855-D dollars are known with sharp strikes and an even smaller number have a full date. The Vasquez Rocks coin is exceptionally well struck; so well struck, in fact, that PCGS has designated on the holder that it is a Full Date. Of the four Uncirculated 1855-D dollars, only one other (ex Duke's Creek/Bass) has a Full Date.

In addition to its exceptional strike, this 1855-D has great eye appeal for the issue with a good deal of luster seen on choice surfaces. Both sides have pleasing color and if you have seen many examples of this date, you'll know that it is seldom found with this degree of good looks!

III.  Type Three

The Type Three design was introduced in 1856 and the Dahlonega mint produced six issues before it was closed in 1861.

The Type Three D mint dollars in this collection are as follows:

• 1856-D, PCGS MS60, ex Chestatee collection

• 1857-D, PCGS MS61

• 1858-D, PCGS MS62+

• 1859-D, NGC MS62

• 1860-D, PCGS MS62, CAC approved

• 1861-D, PCGS MS61

Again, it is hard to focus on one coin, given how many outstanding pieces are in this set. I'm sure you expect me to focus on the 1861-D but I'm actually going to discuss the 1860-D, a coin that, to me, is clearly a highlight of this set.

Only 1,566 gold dollars were struck at the Dahlonega mint in 1860 and this is a rare issue in all grades. A dubious distinction held by this date is the fact that it is the worst struck gold dollar from this mint. The coin in the Vasquez Rocks collection, while showing the familiar weak U in UNITED, is among the best made examples of this date that I have seen. It is of just two graded MS62 by PCGS with a single coin better (an MS63 that should be deleted from the population report as it now appears as an NGC MS64). It is nice enough for the grade that it was approved by CAC and it is one of just two examples of this date in MS62 to have received a CAC sticker.

I am hoping that I will be able to keep the Dahlonega dollars from the Vasquez Rocks collection intact and they will be offered, at first, as a set. If no one purchases them intact, the coins will be broken up and, I assume, they will sell quickly.

For more information on the coins in this collection, please feel free to contact me by email at dwn@ont.com. I expect the full Vasquez Rocks collection to be available for sale in a few weeks.

The Vasquez Rocks Collection: Philadelphia Gold Dollars

I am proud to announce that I will soon begin selling the exceptional Vasquez Rocks Collection of gold dollars. This is one of the finest collection of these coins ever formed with virtually every piece grading MS60 or better and many Condition Census examples included. To get you ready for this epic sale, I'm going to produce a series of blogs that deal with the coins on a mint-by-mint basis and which discuss the highlights of the collection. First, let's look at the gold dollars made at the Philadelphia mint. Philadelphia gold dollars were struck without interruption from 1849 through 1889. Three distinct types are known and these are as follows:

• Type One, 1849-1854

• Type Two, 1854-1855

• Type Three, 1856-1889

Let's look take a brief overview of each of these three types and then discuss them relative to the Vasquez Rocks collection.

Type One gold dollars were made at the Philadelphia from the introduction of this denomination in 1849 until the changeover to the Type Two design in 1854 (in 1854, both the Type One and Type Two designs were produced). Type One Philadelphia gold dollars were made in great amounts and they tend to be common, even in higher grades. These issues are popular with type collectors as they tend to come very well struck and nicely produced. Some dates, notably the 1852 and 1853, exist in grades as high as MS68 or MS69(!) and only one, the 1850, is considered to be scarce in Gem.

The highlight of the Philadelphia Type One gold dollars in the Vasquez Rocks collection is a superb PCGS MS66 example of the 1849 Closed Wreath. It has a population of just three in this grade with one finer and the best graded at this service is an MS66+. The Vasquez Rocks coin, shown below, has a razor sharp strike and amazingly clean surfaces with nary a mark visible to the naked eye.

In 1854, the Mint made the decision to change to the Type Two or Small Indian Head design. This proved to be a disaster from a quality standpoint as the design was hard to strike. Many Type Two gold dollars are seen with poor design details at the centers and this is one of the hardest post-1838 United States gold types to locate in MS65 and above.

1854 and 1855 Type Two dollars from the Philadelphia mint are known. These are very common in circulated grades and available without much of a problem in the lower Uncirculated grades.

The 1854-P Type Two dollar in the Vasquez Rocks Collection grades MS61 while the 1855-P Type Two grades MS62. Both have been encapsulated by PCGS.

The Type Three coins begin in 1856 and extend through the end of this denomination in 1889. The Type Three dollars are a fascinating series to collect. While there are no real rarities, many dates are very scarce to rare in higher grades. The key dates are the 1863 and the 1875.

There are a number of highlights among the Philadelphia Type Three dollars in the Vasquez Rocks Collection. A few of the coins that I especially like are as follows:

• 1856 Slanting 5 PCGS MS66+. One of six graded in MS66 (with two in MS66+) and only four finer.

• 1857 PCGS MS67.  One of six graded in MS67 with just a single coin finer.

• 1859 PCGS MS66+. One of seven graded in MS66 (and the only one in 66+) with five finer.

• 1863 PCGS MS65. One of five graded as such with just two finer. The rarest gold dollar from this mint.

• 1867 PCGS MS66.  One of three graded as such with one better.

• 1868 PCGS MS68.  One of two graded as such with one better.

• 1875 PCGS MS65. One of seven graded with three finer. Only 400 business strikes produced.

• 1886 PCGS MS67.  One of five graded as such with none finer.

The Type Three coin I'd like to focus on for a minute is the 1875, graded MS65 by PCGS. This is a legendary date for US gold collectors with many of the Philadelphia issues having absurdly low mintages. The 1875-P gold dollar has a tiny mintage of just 400 business strikes and it has been recognized as a key issue for well over a century.

The Vasquez Rocks coin is housed in an old green label PCGS holder and it has dazzling fully Prooflike fields on the obverse and reverse that make it resemble a Proof. It shows the diagnostic thorn-like projection extending down from Liberty's chin that is seen only on business strikes. The coin in this set, which is shown below, is one of the few true Gems that I have seen and it is clearly the nicest that has come onto the market since the  Heritage 2/10: 1427 coin, graded MS66 by PCGS, that brought  $109,250 in furious bidding.

The Vasquez Rocks Collection includes many coins that are fresh to the market and it was begun back in the 1980's when superb quality Philadelphia gold dollars were more available than they are today. There are numerous wonderful Gems included and the selection of Type One, Type two and Type Three Philadelphia issues should prove very tempting for the date or type collector.

For more information on the Vasquez Rocks Collection, please contact me via email at dwn@ont.com. I will be sending out notices by email to preferred DWN clients by email, and I anticipate that the collection will become available in around three weeks.

A Neat Dahlonega Knick-Knack

As you become a more passionate collector, "oddball" items become more appealing. I refer to these as knick-knacks and, as you can guess, this is a pretty broad term. For the coin collector, knick-knacks become more appealing as they become more relevant to your collecting specialty. As an example, a collector of Morgan Dollars will be more excited by a canvas silver dollar bag from the Philadelphia mint dated 1885 then I would. To me, this is a neat item but not one that gets my numismatic juices really flowing. I probably shouldn't admit this but there is one area in numismatics that I love above all else: the coinage of the Dahlonega mint. There is something about the coinage from this southern branch mint that appeals to me a little more than any of the other mints. And as someone who loves Dahlonega gold coins, I am always on the lookout for interesting Dahlonega-related knick-knacks.

The problem is that there just aren't many interesting contemporary items from this mint. Sadly, while the Dahlonega mint has left a fascinating legacy of coins for collectors, there are very few items like patterns or mint records or drawings or items from the original mint left for collectors. Around ten years ago I was able to purchase a bullion receipt dated 1856 from the mint (a very rare item and, until a small group of these was found a few years back, one of just two that I had ever seen) but my Dahlonega knick-knack collection was pretty slim.

Until recently, that is.

At the Dallas ANA show, I purchased an item that I think is extremely cool  and probably very rare: a contemporary counterfeit 1842-D Small Date half eagle (shown below) that is the first counterfeit gold coin from this mint that I have ever seen:

The coin was made in brass and later gilt plated. It shows extremely good work, especially on the reverse. It is the proper size and weight (22 mm in diameter and a bit over 8.2 grams) and, as you can see, it appears to have seen a small amount of circulation.

If you think about it, a contemporary counterfeit Dahlonega half eagle makes sense, especially in 1842 which was just the third year in which the new Liberty Head half eagle was produced. For many people, especially those who didn't live that close to Dahlonega, there was not much familiarity with the new coins from this mint and a reasonable facsimile stood a decent chance of entering circulation and staying there.

But, there were other reasons why a coin like this is an amazing anomaly. It was die struck, and someone with real artistic sensibility took the time to create the obverse and reverse dies. A goodly amount of artistic and technological sophistication was required and this doesn't seem to be something that was found in excess in North Georgia in the early 1840's. Also (and I don't know this for sure) the penalties for counterfeiting in the South during this time period had to be excessively harsh. Someone was taking a huge risk to produce counterfeit gold coins in Georgia in the early 1840's, and you have to wonder how many were actually made let alone how many entered circulation.

So, why is this item special to me and why does it now hold a place high in my personal collection of knick-knacks? As someone who is a major dealer in Dahlonega gold, I won't collect the coins from this mint because I don't want to compete against my clients. So this is the closest thing to a "real" piece of D mint gold that I can hope to own. But beyond that, I love the rarity and the history of this piece.

How rare is it? I have never seen another and I'd like to think I've got the inside track on any pieces that would have come onto the market in the past two+ decades. How historic is it? A contemporary counterfeit 1842-D half eagle that is well-designed and which still retains much of its original gilt finish clearly has an incredible story to tell, although I may never know exactly what it is.

Getting back to the original point of this blog, items like this are what make collecting really fun. Regular issue coins are great and there is certainly a huge amount of pride-of-ownership to have a great 1842-D half eagle in your set. But the really esoteric items in the Dahlonega market--or in any other market--really appeal to me. Be they catalogs, original papers, plaster molds...anything that gives me deeper insight into the coins that I love add a lot of value to my personal holdings.

Why Are Nice Coins So Hard to Find?

When I'm at shows or talking to collectors and dealers over the phone, I hear a common refrain: nice coins are very hard to find. This appears to be the case in nearly all strongly collected series, be it Indian Cents, Civil War era gold or Morgan Dollars. I have a few theories about this which I'd like to share. The first is simple: not everyone has the same concept of what is a "nice" coin. I like dirty, original 18th and 19th century gold and a coin with the aesthetics that I find appealing is clearly not going to be the same for someone who likes coins that are bright and shiny.

I don't think the moaning about a lack of nice coins is new and I'm guessing that collectors in 1912 were complaining in some of the same ways that collectors in 2012 are.

Let me share a theory with you that is basically speculative but which I think has some real merit. As I have stated many times, grading is a continuum. A "grade" is actually a range which can be expansive. As an example, let's look at the MS63 grade.

Assuming that you agree that grading is a continuum, you'll agree with me that MS63 is actually a series of grades that begins with MS63.0 and ends with MS63.9. I would further describe these ranges as follows:

63.0-63.3: coins that are low end or which barely qualify as this grade. I estimate that for the typical series, around 40-45% of the MS63's fall into this range.

63.4-63.5: coins that are decent and which would easily re-grade as a 63 if resubmitted to PCGS or NGC. I estimate that for the typical series around 30-35% of the MS63's fall into this range.

63.6-63.8:  coins that are high end for the grade and which are now (sometimes) designated as "+" or "*" coins by the services. I estimate that for the typical series maybe 10-15% of the MS63's fall into this range.

63.9:  coins that are exceptional for the grade and which are almost assuredly going to upgrade to MS64 at some point. I estimate that for the typical series maybe 5% (and probably less) of the MS63's fall into this range.

If my theory is correct, this mean that at least 70-80% of all MS63 coins are below-average to average in quality. The best of these "average" coins (a coin that I regard as being a solid, commercial example) is likely to get strong consideration for approval at CAC but the majority of them will not be stickered. These not-so-great or just-OK coins are the ones that are generally seen on E-Bay or in Heritage sales, and these are what many collectors are exposed to on a regular basis.

So what about the 20-30% of the MS63's that range from being really nice to exceptional? Where are they and why are they so hard to find? I think the answer(s) are simple.

In many series, there is huge financial motivation to upgrade an MS63 to an MS64. As an example, an 1812 half eagle in MS63 is worth around $22,500-25,000; the same coin in an MS64 holder is worth $35,000-45,000. If I own an 1812 half eagle that I regard as a 63.7 or a 63.8, doesn't it seem obvious that I'm going to go to great lengths to get the coin in a 64 holder and possibly have a $10,000 to $20,000 pay day?

Which brings me to this point: virtually all the high end MS63 coins are in MS64 holders or trying to get there. The MS63+ coins (which translate to the 63.6 to 63.8 pieces described above) are therefore the best available coins and they are typically sold by good retail dealers to their best clients. The typical collector either never gets to see these PQ coins or if he does, often in an auction environment, he has to compete with sophisticated buyers of high end coins.

Another point: I think there are more high end coins around than most collectors (and dealers) realize. It's just that we don't see them as often and much of what we do see on a day-by-day or show-by-show basis is uninspiring.

Now that you've mulled over that theory, I have another one to share with you. Next time you wonder "where are all the nice coins" consider the following fuzzy math.

If a coin is 150 or so years old, it has been collectible for 100 or so years. If the typical coin is owned around five years (and yes I am aware that there are many coins that are in "strong hands" and don't trade until they are held for fifteen or twenty years) that means that the coin you just bought may have had as many as twenty previous owners.

Think about this: that means some or maybe even all of these twenty owners have shipped the coins through the mail in flimsy holders/cleaned the coins/mishandled the coins/stored the coins in PVC flips/stored them loose in cabinets/dipped them and forgot to rinse them/etc. For a coin in nearly any grade to have survived generations of overzealous collectors without having had something bad done to them...well, that just about boggles my mind. And that, in a nutshell, is another very good reason why nice coins are so hard to find.

Are you in the market for nice coins? Send me an email at dwn@ont.com and I will try to hook you up with some very nice coins for your collection!

Dallas Texas and the History of American Coin Collecting

I am headed to Dallas later this week to attend the upcoming ANA National Money show. Going to Dallas is always a little bittersweet for me. I lived in The Big D for a significant portion on my adult life (a little over twenty years, in fact, with a few diversions), and it's where I met my late wife and essentially learned to be a coin dealer. Dallas doesn't have the long numismatic history that New York, Boston and Philadelphia have but despite the fact that it is a comparatively new city, I'd venture to say that it is the epicenter of the modern coin market. The two most important coin dealers of all-time were located in Dallas and at least three to five of the greatest collections of American coins ever formed were created in Dallas as well. A little history follows...

B. Max Mehl, located in Dallas' sister town of Ft. Worth was unquestionably the most important coin dealer in America during the first half of the 20th century. What is so remarkable about Mehl was that he was an immigrant from Lithuania who despite no formal numismatic training (and, in all probability, a lack of all but the most basic English skills for the first part of his career) managed to build a dynamic coin business thousands of miles away from the traditional Eastern hub of the business.

Mehl built his business around clever promotions, self-promotion and using direct mail and advertising at a time when no other coin dealers were doing this, let alone doing this successfully. It is said that his advertising budget in the 1930's and 1940's approached $1 million per year and that at one time a significant portion of the daily mail that arrived in the city of Ft. Worth was addressed to Mehl.

Mehl was not a sophisticated numismatist but he was a wonderful popularizer of the coin hobby and I doubt if anyone who began collecting coins in the era between WW1 and WW2 didn't own at least a few of his catalogs and/or do business with him from time to time. If I'm not mistaken, his old building is still located in downtown Ft. Worth.

Heritage Rare Coins, located in Dallas, is to the 21st century coin market as Mehl was to the market in the first half of the 20th century. The internet has surely been one of the major factors in the changing of numismatics in the last decade and no one has capitalized on the new web-based technologies more than Heritage.

At this point, the rare coin market is as close to a monopoly as it has ever been and I attribute this to Heritage making many very smart decisions in the last fifteen years and their competition conveniently making many dumb decisions. Heritage now completely dominates the American numismatic auction business and they have essentially eliminated their competition save for Stack's Bowers. It is hard to remember that as recently as a decade ago there were at least five thriving competitors in the coin auction business.

The brilliance of Heritage's marketing strategy was to realize before anyone else the impact that the internet would have on the coin market and how being transparent would create a more comfortable bidding and buying environment for collectors. So many of the things that we as a hobby take for granted now (safe online bidding, a database of coin prices and populations, high quality digital images, etc) were either pioneered or perfected by Heritage.

As I mentioned above, many of the greatest coin collections ever assembled have been formed in the Dallas/Ft. Worth area.

The first great local coin collection in the Metroplex was formed by Amon Carter Sr and his son Amon Carter Jr.  The bulk of this collection was sold at public auction by Stack's in January 1984. I didn't attend this sale but the story behind it, as I recall, was that the weather in New York was awful and that it was not as well-attended with out-of-town buyers as it should have been due to this. The Carter sale was one of the really great auctions of the era even though it is not as well-remembered as Norweb, Garrett, etc.

The best-remembered coin from this sale was the finest known 1794 silver dollar which is now believed to be the first example struck. But there were many great gold coins in the sale including very high quality Liberty Head double eagles (Proofs and business strikes) that would generate considerable interest today if offered for sale.

The next great Dallas collection is a name better-known to gold coin collectors: Harry W. Bass. The Bass collection, which was mostly sold in a series of four auctions conducted by Bowers and Merena between 1999 and 2001, contained the most comprehensive date and variety set of Liberty Head gold coins ever assembled.

Bass became a serious collector of U.S. gold in the early-to-mid 1960's. This was an era in which gold coins were plentiful, inexpensive and under-researched and through hard work and good connections with dealers (primarily Mike Brownlee, Stanley Kessleman, John Rowe and Julian Leidman) Bass put together a really remarkable collection.

I attended the Bass II, Bass III and Bass IV sales in New York in 1999 and 2000 and, even then, I think I was sufficiently aware of their significance. In some ways, these sales were the defining moment of the end of the old-school coin market; the point in time just before the internet took , when dealers still attended sales in person and when a gigantic event like Bass II (over 2,000 lots and with thousands and thousands of interesting individual and grouped coins) could be "carved up" by groups of dealers and dominated by six to eight buyers.

There are two currently active collections in Dallas/Ft. Worth that deserve mention and they are clearly among the five greatest American sets ever formed. The first is the Pogue family. This set is not all that well-known outside of the "inner circle" of dealers and collectors but it is incredible. The scope of the collection is Gem quality U.S. coins struck from the 1790's until around 1900 with an emphasis on Gem early silver and gold.

I have never had the good fortune to view this collection in its entirety but I have had the chance to view it in dribs and drabs. The Pogues got really serious about coins during the Eliasberg sale in October 1982 and they bought heavily out of what was arguably the greatest collection of U.S. gold ever formed. They continued to buy aggressively in the 1980's and 1990's with the guidance of David Akers, Larry Hanks and others. I have had to compete against the Pogues at a number of auctions and when they want a really great coin, needless to say that are formidable competitors. From what I know about this collection, it is the single greatest set of its type ever assembled and it is certainly the one set that I would pay to be able to view it.

The other great collection in located in Ft. Worth and it belongs to Bob Simpson, the current owner of the Texas Rangers baseball team and the former CEO of XTO Energy. Simpson is much newer to the market than the Pogues but he has assembled an amazing, comprehensive collection in less than a decade. To his credit, he has done this in a highly competitive environment in which information is more accessible than ever, few coins sell under the radar and the average "Simpson-esque" coin is far more expensive than in past decades.

Before I end this blog, it wouldn't be right not to mention a few more of the great dealers and collectors from the Dallas/Ft. Worth area. Some of the dealers who I regard as major players in the market (past or present) include John Rowe, Mike Brownlee, Mike Follett and R.E. Wallace. You couldn't list four more different guys but each, in his own way, had an impact on the coin market that extended far beyond Dallas or Ft. Worth.

And no blog about Dallas/Ft. Worth numismatics could be complete without mentioning William Phillpot (a great paper money collector), R.E. Schermerhorn (one-time owner of an 1849-C Open Wreath gold dollar), John Murrell (owner of the greatest unknown collection of U.S. gold coins ever assembled) and others.

Se you at the show at Tables 217-219!

Major Varieties of Type One Liberty Head Double Eagles

     The true test of popularity for a series is when collectors begin to focus on varieties within the series rather than just dates. Some series, like Capped Bust half dollars, are actually more avidly collected by variety than they are by date. As a rule, gold coins are collected by date, not variety. This is due to the fact of the high entry cost per coin for most gold issues and the fact that many series of gold coins do not have interesting varieties.      Even though Type One Liberty Head double eagles are an expensive type with a number of very rare and/or expensive individual issues, there are a decent number of individuals who have begun to either specialize in varieties or who have decided to add certain varieties to their date collections.

     What are the major varieties of Type One Liberty Head double eagle? How rare are they and how significant are they? In this article, I'm going to focus on the varieties that I think should be included in any collection of Type Ones and offer my insights into them.

     1852/1852:  The 1852 is among the most common issues in the entire Type One series with a mintage of over 2 million coins. There are a few minor varieties and one obvious one: the Repunched Date. On this variety, the date was first punched too high and all four of the digits are doubled at the top. What makes this variety fairly easy to recognize even with the naked eye is the fact that this doubling has made the date quite heavy.

    I would say that around one out of every 25-50 1852 double eagles that I see is the 1852/1852. It is obvious enough that it can be seen on comparatively low grade coins. I regard it as being very collectible and it seems to have a current premium of around 25-50% above a common date in circulated grades; in Uncirculated it is very rare.

     Most of the 1852/1852 double eagles that I have seen grade in the EF45-AU53 range. This variety is very scarce in properly graded AU55 and rare in AU58. It is very rare in Uncirculated with probably fewer than ten known; the best I have seen are a pair of MS61's.

     Both NGC and PCGS recognize this variety. The population statistics at both services are very low due to it having been recognized for a comparatively brief amount of time.

     Catalog Numbers:  Breen 7152, FS-301

     Collectability: **** (four stars out of 5)

     1853/2:  There are numerous interesting varieties seen on the 1853 double eagle. This include varieties with a repunched 1, a repunched 3 and a blundered date with traces of an erroneous 3 between the 53 . But the variety that is the best known and which is the most sought-after by collectors is the 1853/2 overdate.

     In my opinion, this is a controversial variety. Both PCGS and NGC recognize it but designate it as an 1853/'2' which shows that they are not totally convinxced it is an true overdate. In my opinion, its status remains debatable. The two lines in the lower loop of the 3, ostensibly from an effaced 2, don't convincingly match the former digit. Also, the major diagnostic of this variety, a dot below the R in LIBERTY, is sometimes seen on normal date 1853 double eagles with absolutely no trace of the supposed overdate.

     Whatever the true status of this variety is, it has been collected along with the regular issues since the 1970's and high grade examples have commanded strong prices since the late 1980's/early 1990's. The current  price record for this variety is $48,875 for a PCGS MS61 that was sold by Heritage in their 2005 ANA auction.

     The 1853/2 double eagle is probably overvalued in comparison to the other varieties on this list. It is interesting to note that its price levels did not drop after both NGC and PCGS changed its designation to 1853/'2' a few years ago. My thought at the time was that it would hurt this variety's creditability given the fact that the services were basically implying that they doubted its veracity.

     Catalog Numbers:  Breen 7162, FS-301 (previously FS-008)

     Collectability:  ***1/2* (three and a half stars out of five)

     1854/184 Repunched Small Date:  The 1854 double eagle is seen with a Small Date and a Large Date (for more information on this variety, see below). The Small Date is the more common of the two but there is an interesting repunched date variety that is beginning to gain traction with Type One double eagle collectors. On this variety, the tops of the 1 and the 54 are noticeably repunched at their tops while the 8 is not. On early die state examples of this variety, the repunching can be seen with the naked eye.

     When compared with the 1852 Repunched Date, the 1854/154 seems to be the scarcer of the two, especially in higher grades. It is seen most often in the EF40-AU50 range and it is rare in AU55 and above. I have seen just a few Uncirculated examples of which the best was a single NGC MS61. Others probably exist in Uncirculated but these have not yet been designated by NGC. PCGS does not recognize this variety (yet) while NGC does.

     This is a good variety for the sharp-eyed collector to try and cherrypick. It is hard to figure out accurate values for lower grade coins but examples in AU50 and above already command premiums over normal Small Dates and I would expect this premium to increase as this variety becomes better known.

     Catalog Numbers:  Breen 7167,  FS VP-001

     Collectability:  *** (three stars out of five)

     1854 Large Date:  No variety of Type One double eagle has increasded in popularity or price more in the last decade than the 1854 Large Date. After being more or less unknown for decades, this variety went on collector's radar screens in the 1980's and since the early 1990's it has at least doubled--if not tripled--in value.

     The Large Date used a silver dollar logotype and it is appreciably bigger than the more often-seen Small Date. My guess is that it is at least six to eight times more scarce than the Large date. As recently as five years ago, I was still able to find undesignated Large Date coins in third-party holders (or raw) but at this point, it has become extremely hard (and lucrative!) to cherrypick examples. This variety is seen most often in EF45 to AU53 grades. It is very scarce in AU55 and rare in properly graded AU58. Interestingly, the few nice AU's I have seen have a "Euro" appearance and likely were found overseas. The finest known is an NGC MS64 that was last sold as B+M 9/08: 831 where it brought a record $96,600.

     The 1854 Large Date is designated by both PCGS and NGC. The population figures at both services are misleading as this has only been attributed for a few years. This is especially true at PCGS where the variety is newer than at NGC.

     The 1854 Large Date is widely accepted and it is an integral part of the Type One set. While I do not think it will continue to show the rise in value that it has seen over the last decade to decade and a half, I d feel that it is a savvy purchase for the advanced collector, particularly in AU50 and above.

     Catalog Numbers:  Breen 7168

     Collectability:  ***** (five stars out of five)

     1856-S and 1857-S Varieties:   After the discovery of the S.S. Central America, a number of varieties were discovered for the 1856-S and 1857-S double eagles. These are mostly positional and are very minor in nature. The SSCA coins that are designated by PCGS do not sell for any premium over other 1856-S and 1857-S double eagles from this source.

     There are a few varieties, though, that are worth a short mention.

     The 1856-S is known with a sharply double punched 56 in the date (Breen 7184) that can be seen with light magnification. In my experience, this is a scarce variety in higher grades but it has little collector premium.

     The 1857-S is known with a Medium S mintmark and a Large S mintmark. Before the discovery of the SSCA hoard, the Large S was considered to be very rare in higher grades but it is now available. Ironically, PCGS does not use this designation and instead focused on very minor varieties such as the "spiked shield," etc.

     Catalog Numbers:  1856-S Repunched 56 (Breen 7184), 1857-S Medium S (Breen 7187), 1857-S Large S (Breen 7189).

     Collectability:  ** (two stars out of five)

     1859-S Double Die Obverse:  This variety shows clear doubling on the BERTY in LIBERTY. This doubling is mostly on the lower portions of the letters and it is farily easy to see with light magnification.

     I remember having an interesting "debate" with a very savvy double eagle collector a few years ago about this variety. He claimed it was reasonably common while I believed it was very scarce to rare. Sine then, I have examined close to 100 examples of this date and have not seen more than four or five of the Double Liberty variety. This may be because other people are looking for them as well but it is my belief that this is a very hard coin to find.

     NGC recognizes this variety (and has for a few years) while PCGS only just started recognizing it. This means that at both services the number graded are unrealistically low and collectors shouldn't think that this variety has the same level of rarity as an issue like the 1854-O or the 1856-O.

     The 1859-S Double Die Obverse (also known as the Double Liberty) is seen most often in the EF40 to AU50 range. It is rare in AU55 and very rare in AU58. I have only seen two or three in Uncirculated and none better than MS61. NGC has graded just a single coin in Uncirculated (an MS60) which I sold to a specialist collector around three or four years ago.

     My guess is that this variety will become a key addition to the Type One set as the years go forward. Once it is better recognized and people are certain what sort of premium they must pay for it, its popularity will increase.

     Catalog Numbers:  Breen 7199, FS-101.

     Collectability:  *** (three stars out of five)

     1861-S Paquet Reverse:   Early in the life of the Type One design, it was determined that it was hard to strike and it did not always wear properly. Nothing was done about this until 1859-1860 when the assistant Mint Engraver Anthony Paquet produced a new reverse with tall, narrow letters. Coins were produced early in 1861 at the Philadelphia mint but it was quickly determined that this design was faulty due to the fact that the inner border was too narrow which allowed the surfaces to easily abrade. Coinage at Philadelphia was quickly stopped but by the time this information reached the San Francisco mint, close to 20,000 1861-S double eagles with the Paquet Reverse had been produced.

     The 1861-S Paquet reverse was mostly unknown until the early 1950's when examples were found in Europe. Today there an estimated 100-125 known with most in the EF40 to AU50 range. The best that I have seen are two or three that I grade AU58; most of the coins in AU55 and AU58 holders, in my opinion, are overgraded. The current auction record is $184,000 for an NGC AU58 sold as Lot 5039 in Heritage's 1/12 auction. I know of at least two that have sold for over $200,000 via private treaty.

     Values for this issue increased dramatically during the late 1990's and early 2000's; to the point where the average quality example was probably overvalued. In 2012, I see very few offered for sale and I believe that a nice AU is worth at least what it was during the strong mafrket of 2007-2008, if not even more.

     The 1861-S Paquet reverse double eagle has been accepted as an integral member of the Type One set since the early 1960's and it will continue to be a highly prized issue. It is the rarest double eagle of any date or type from the San Francisco mint and I expect that the current low range of $40,000-50,000 for a presentable example is coming to an end. In the not-so-distant future, expect to pay in the $60,000-80,000+ range for the "right" coin.

     Catalog Numbers:   Breen 7205, Breen 7206

     Collectability:  ***** (five stars out of five)

     1863-S Mintmark Varieties:  Other than a minor date repunching variety on the 1862-S, there aren't many other post-Paquet varieties in the Type One series worth a mention. Probably the most interesting are the two mintmark varieties seen on the 1863-S.

     The more common 1863-S double eagle has a Medium mintmark, as on the reverse used in both 1861 and 1862. The more common has a Small mintmark, as seen on the 1864-S and 1865-S reverses.

     While somewhat interesting, I doubt if minor varieties such as these will ever catch on with Type One double eagle collectors.

     Catalog Numbers:  Breen 7126 (Medium S), Breen 7127 (Small S)

     Collectability:  * (one star out of five)

     I expect the varieties listed above that are four stars or higher to have significantly increased demand over the next decade. I don't expect any other varieties to have such widespread appeal but you never know; the blessing of PCGS or NGC would go a long way in creating collector demand.

     For more information about Liberty Head double eagles, please feel free to contact me directly ar dwn@ont.com.